Price of synthetic fiber

The synthetic fiber PPI reached 164.5 in 2024, representing a modest 0.6% increase from the previous year. This relatively stable performance follows a period of significant volatility, with prices moderating after the sharp increases experienced during the post-pandemic recovery. Supply chain normalization has contributed to price stabilization, while steady demand from textile manufacturers and industrial applications continues to support pricing levels. However, competitive pressures from alternative materials and improved production efficiency are constraining further price growth.

The synthetic fiber PPI has experienced considerable volatility over the past five years, with the index rising from 127.2 in 2020 to a peak of 164.5 in 2024. The most dramatic movement occurred during 2020-2022, when prices initially declined to 127.2 in 2020 due to pandemic-related demand disruptions, before surging 25% over the following two years. This sharp increase reflected supply chain disruptions, energy cost inflation and raw material shortages that significantly impacted petrochemical feedstock prices.

The pandemic fundamentally altered synthetic fiber markets, with initial lockdowns reducing demand from apparel and automotive sectors. However, recovery was swift and pronounced, driven by pent-up consumer demand, supply chain bottlenecks and inventory restocking. Rising crude oil prices during 2021-2022 particularly impacted synthetic fiber costs, as most synthetic fibers are petroleum-based derivatives. Energy cost inflation further pressured production expenses, while transportation disruptions added to overall price pressures.

Trade dynamics also influenced pricing patterns, with tariffs and trade tensions affecting raw material availability and costs. Geopolitical events created additional uncertainty in energy markets, directly impacting feedstock costs for synthetic fiber production. The industry's consolidation during this period, with several plant closures and capacity adjustments, contributed to tighter supply conditions and supported higher pricing levels.